<ARTICLE> 5
<LEGEND>
THE ENCLOSED FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE FINANCIAL STATEMENTS OF WAVE SYSTEMS CORP. FOR THE YEAR ENDED
DECEMBER 31, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>

                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1999
<PERIOD-START>                             JAN-01-1999
<PERIOD-END>                               DEC-31-1999
<CASH>                                       6,290,045
<SECURITIES>                                 4,480,500
<RECEIVABLES>                                        0
<ALLOWANCES>                                         0
<INVENTORY>                                    431,686
<CURRENT-ASSETS>                            11,694,087
<PP&E>                                       4,920,707
<DEPRECIATION>                             (2,239,834)
<TOTAL-ASSETS>                              16,531,883
<CURRENT-LIABILITIES>                        6,823,643
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                       415,262
<OTHER-SE>                                   9,708,240
<TOTAL-LIABILITY-AND-EQUITY>                16,531,883
<SALES>                                        187,515
<TOTAL-REVENUES>                                     0
<CGS>                                           93,170
<TOTAL-COSTS>                               28,941,247
<OTHER-EXPENSES>                               240,000
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                             832,976
<INCOME-PRETAX>                           (28,052,572)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                              (28,052,572)
<EPS-BASIC>                                      (.73)
<EPS-DILUTED>                                        0